Project, Contract & Procurement Seminars

Contract Risk Management & Compliance

Overview:

Introduction

One of the major functions of contracting is to ensure that risks to owners and contractor are identified and managed in a way that both parties are satisfied with the project outcome. While a contract cannot, of itself, make risk “go away”, it can, and should, identify the risks, determine who is responsible for managing each individual risk, and for the consequences should the risk occur. We has developed this interesting and fast paced seminar to provide participants with:

Critical understandings of the risk mitigation process.

Knowledge to move contracts from the tactical to a more important strategic focus.

Participants will increase competencies through a variety of instructional methods including lecture by an experienced practitioner and consultant, cases/exercises, reviewing published articles, checklists, and group discussions covering current practices and their relationship to the implementation of new concepts.

Delegates are encouraged to bring real problem examples with them, for discussion on a confidential basis, and to share their experience of particular issues in their company or industry. Time will be allowed for general discussions, and for one-to-one discussion with the trainer.

Organisational Impact

The organisation will benefit by:

Expanding the expertise of personnel involved in contract development and management will allow project and general management teams to be more effective.

The total cost of ownership will be understood and reduced by properly identifying and managing the risks.

Clear allocation of risk will reduce the possibility of disputes, and any that do arise should be settled more quickly, with less cost, delay and disruption.

Developing an appreciation of the true effect of contractual indemnities which will enable better decision-making as to contract structures and ensure that risk is passed to others properly and in a cost effective manner.

Personal Impact

Attendees will gain by participation in this program as a result of:

Increased understanding of risk

Better ability to allocate risk, and to select the appropriate contractual regime to achieve your aim

Develop risk identification and assessment skills

Heighten understanding of the alternative methods of allocating risk

Improve understanding of different approaches to managing risk during a contract

Improve the ability to reduce the negative impact of poorly-managed risk on a project or a company

SEMINAR OUTLINE

DAY 1

Types and Management of Risk

The Need for Contractual Relationships

Defining Risk

Categories of R for Both Sides of a Contract

Risk Assessment Process

Managing Risk

Qualifying Suppliers

Defining Internal Control

Proportionality of Control

DAY 2

Minimizing and Transferring Risk

Transferring risk through Contract Types

Firm Fixed Price or Lump Sum Contracts

Cost reimbursable Contracts

Incentive Contracts

Award-Fee Pricing Arrangements

Indemnities

Cross Indemnities

Insurance

DAY 3

Risk Related Terms & Conditions

External events

Force majeure

Strikes and other labour disputes

Risk and Title

Use of ICC Incoterms

Assignment and Novation

Other clauses that need to flow down to sub-contractors

Risks associated with Sub-Contractors

DAY 4

Dealing with Financial Risks

Controlling Risk Associated with Payments

Currency Risk

Economic Risk

Fraud and Corruption

Limiting or excluding liability

Distinctions between liability in contract, and the general law

“Gross negligence”

A review of some sample clauses from standard contracts, and other real documents

DAY 5

Remedies When Bad Stuff Happens

Mistakes and Misrepresentations

Impracticability of Performance

Remedies Generally

Types of Remedies

Liquated damages

Warranties

Cover

Discussion of real examples (delegates are encouraged to bring real or made up examples for discussion)